Bill Text: NJ S2647 | 2018-2019 | Regular Session | Introduced
Bill Title: Authorizes NJ Infrastructure Bank to expend certain sums to make loans for environmental infrastructure projects for FY2019.
Spectrum: Strong Partisan Bill (Republican 12-1)
Status: (Introduced - Dead) 2018-06-21 - Substituted by A4169 [S2647 Detail]
Download: New_Jersey-2018-S2647-Introduced.html
Sponsored by:
Senator BRIAN P. STACK
District 33 (Hudson)
SYNOPSIS
Authorizes NJ Infrastructure Bank to expend certain sums to make loans for environmental infrastructure projects for FY2019.
CURRENT VERSION OF TEXT
As introduced.
An Act authorizing the expenditure of funds by the New Jersey Infrastructure Bank for the purpose of making loans to eligible project sponsors to finance a portion of the cost of construction of environmental infrastructure projects, and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. The New Jersey Infrastructure Bank, established pursuant to P.L.1985, c.334 (C.58:11B‑1 et seq.), is authorized to expend the aggregate sum of up to $810.6 million and any uncommitted balance of the aggregate expenditures authorized pursuant to section 1 of P.L.2000, c.93, section 1 of P.L.2001, c.224, section 1 of P.L.2002, c.71, section 1 of P.L.2003, c.159, section 1 of P.L.2004, c.110, section 1 of P.L.2005, c.197, section 1 of P.L.2006, c.67, section 1 of P.L.2007, c.140, section 1 of P.L.2008, c.67, section 1 of P.L.2009, c.101, section 1 of P.L.2010, c.62, section 1 of P.L.2011, c.95, section 1 of P.L.2012, c.38, section 1 of P.L.2013, c.94, section 1 of P.L.2014, c.26, section 1 of P.L.2015, c.107, and section 1 of P.L.2016, c.31 as amended by P.L.2017, c.13, and section 1 of P.L.2017, c.142 as amended by P.L.2017, c.327, for the purpose of making loans, to the extent sufficient funds are available, to or on behalf of local government units or public water utilities (hereinafter referred to as "project sponsors") to finance all or a portion of the cost of construction of environmental infrastructure projects listed in sections 2 and 4 of this act.
b. The trust is authorized to increase the aggregate sums specified in subsection a. of this section by:
(1) the amounts of capitalized interest and the bond issuance expenses as provided in subsection b. of section 7 of this act;
(2) the amounts of reserve capacity expenses and debt service reserve fund requirements as provided in subsection c. of section 7 of this act;
(3) the interest earned on amounts deposited for project costs pending their distribution to project sponsors as provided in subsection d. of section 7 of this act;
(4) the amounts of the loan origination fee as provided in subsection e. of section 7 of this act; and
(5) the amount appropriated to the Department of Environmental Protection for the purpose of making zero interest and principal forgiveness loans pursuant to section 3 of P.L. , c. (pending before the Legislature as Senate Bill No. of 2018 and Assembly Bill No. of 2018) in connection with the project costs of a particular project sponsor, to the extent the priority ranking and an insufficiency of funding prevents the department from making the loan as provided in subsection f. of section 7 of this act.
c. (1) Of the sums made available to the trust from the "Water Supply Trust Fund" established pursuant to subsection a. of section 15 of the "Water Supply Bond Act of 1981" (P.L.1981, c.261) pursuant to P.L.1997, c.223, the trust is authorized to transfer such amounts to the Department of Environmental Protection as needed for drinking water project loans pursuant to the "Safe Drinking Water Act Amendments of 1996," Pub.L.104-182, and any amendatory and supplementary acts thereto (hereinafter referred to as the "Federal Safe Drinking Water Act"), under terms and conditions established by the Commissioner of Environmental Protection and trust, and approved by the State Treasurer, which loans shall be jointly administered by the trust and department.
(2) Of the sums appropriated to the trust from the "Wastewater Treatment Trust Fund" established pursuant to section 15 of the "Wastewater Treatment Bond Act of 1985," (P.L.1985, c.329) pursuant to P.L.1987, c.198, the trust is authorized to transfer such amounts as needed to the Clean Water State Revolving Fund established pursuant to section 1 of P.L.2009, c.77 for the purposes of issuing loans or providing the State match as required for the award of the capitalization grants made available to the State for clean water projects pursuant to the "Water Quality Act of 1987" (33 U.S.C. s.1251 et seq.), and any amendatory and supplementary acts thereto (hereinafter referred to as the "Federal Clean Water Act").
(3) Of the sums appropriated to the trust from the "1992 Wastewater Treatment Trust Fund" established pursuant to section 27 of the "Green Acres, Clean Water, Farmland and Historic Preservation Bond Act of 1992" (P.L.1992, c.88) pursuant to P.L.1996, c.86, the trust is authorized to transfer such amounts as needed to the Clean Water State Revolving Fund for the purpose of providing the State match as required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act.
(4) Of the sums appropriated to the trust from the "Stormwater Management and Combined Sewer Overflow Abatement Fund" created pursuant to section 14 of the "Stormwater Management and Combined Sewer Overflow Abatement Bond Act of 1989" (P.L.1989, c.181) pursuant to P.L.1998, c.87, the trust is authorized to transfer such amounts as needed to the Clean Water State Revolving Fund for the purpose of providing the State match as required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act.
(5) Of the sums appropriated to the trust from the "2003 Water Resources and Wastewater Treatment Trust Fund" established pursuant to subsection b. of section 19 of the "Dam, Lake, Stream, Flood Control, Water Resources, and Wastewater Treatment Project Bond Act of 2003" (P.L.2003, c.162) pursuant to P.L.2004, c.110, the trust is authorized to transfer such amounts as needed to the Clean Water State Revolving Fund for the purpose of providing the State match as required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act.
(6) Of the sums appropriated to the trust from repayments of loans deposited in any account, including the "Clean Water State Revolving Fund," "Wastewater Treatment Fund," the "1992 Wastewater Treatment Fund," the "Water Supply Fund," the "Stormwater Management and Combined Sewer Overflow Abatement Fund" or the Drinking Water State Revolving Fund, as appropriate, pursuant to sections 11 and 12 of P.L.1995, c.219, sections 11 and 12 of P.L.1996, c.85, sections 11 and 12 of P.L.1997, c.221, sections 12 and 13 of P.L.1998, c.84, section 11 of P.L.1999, c.174, section 11 of P.L.2000, c.92, section 11 of P.L.2001, c.222, section 11 of P.L.2002, c.70, section 11 of P.L.2003, c.158, section 11 of P.L.2004, c.109, section 11 of P.L.2005, c.196, section 11 of P.L.2006, c.68, section 10 of P.L.2007, c.140, section 10 of P.L.2008, c.67, section 10 of P.L.2009, c.101, section 10 of P.L.2010, c.62, section 10 of P.L.2011, c.95, section 10 of P.L.2012, c.38, section 10 of P.L.2013, c.94, section 10 of P.L.2014, c.26, section 10 of P.L.2015, c.107, section 10 of P.L.2016, c.31, section 10 of P.L.2017, c.142 as amended by section 10 of P.L.2017, c.327, and section 10 of P.L. , c. (pending before the Legislature as Senate Bill No. of 2018 and Assembly Bill No. of 2018) for deposit into one or more reserve funds or accounts established by the trust pursuant to section 11 of P.L.1985, c.334 (C.58:11B‑11), the trust shall transfer to the respective fund of origin the uncommitted balance of all such moneys no longer utilized by the trust for such purposes.
d. For the purposes of this act:
(1) "capitalized interest" means the amount equal to interest paid on trust bonds which is funded with trust bond proceeds and the earnings thereon;
(2) "debt service reserve fund expenses" means the debt service reserve fund costs associated with reserve capacity expenses, water supply projects for which the project sponsors are public water utilities as provided in section 9 of P.L.1985, c.334 (C.58:11B-9), other drinking water projects not eligible for, or interested in, State or federal debt service reserve funds pursuant to the "Water Supply Bond Act of 1981," P.L.1981, c.261, as amended and supplemented by P.L.1997, c.223, and any clean water projects not eligible for, or interested in, State or federal debt service reserve funds from the Clean Water State Revolving Fund;
(3) "issuance expenses" means and includes, but need not be limited to, the costs of financial document printing, bond insurance premiums or other credit enhancement, underwriters' discount, verification of financial calculations, the services of bond rating agencies and trustees, the employment of accountants, attorneys, financial advisors, loan servicing agents, registrars, and paying agents, and any other costs related to the issuance of trust bonds;
(4) "loan origination fee" means the fee charged by the Department of Environmental Protection and financed under the trust loan to pay a portion of the costs incurred by the department in the implementation of the New Jersey Environmental Infrastructure Financing Program; and
(5) "reserve capacity expenses" means those project costs for reserve capacity not eligible for loans under rules and regulations governing zero interest loans adopted by the Commissioner of Environmental Protection pursuant to section 4 of P.L.1985, c.329 but which are eligible for loans from the trust in accordance with the rules and regulations adopted by the trust pursuant to section 27 of P.L.1985, c.334 (C.58:11B‑27).
e. The trust is authorized to increase the loan amount in the future to compensate for a refunding of the issue, provided adequate savings are achieved, for the loans issued pursuant to P.L.1995, c.218, P.L.1996, c.87, P.L.1997, c.222, P.L.1998, c.85, P.L.1999, c.173, P.L.2000, c.93, P.L.2001, c.224, P.L.2002, c.71, P.L.2003, c.159, P.L.2004, c.110, P.L.2005, c.197, P.L.2006, c.67, P.L.2007, c.140, P.L.2008, c.67, P.L.2009, c.101, P.L.2010, c.62, P.L.2011, c.95, P.L.2012, c.38, P.L.2013, c.94, P.L.2014, c.26, P.L.2015, c.107, P.L.2016, c.31 as amended by P.L.2017, c.13, P.L.2017, c.142 as amended by P.L.2017, c.327, and P.L. , c. (pending before the Legislature as Senate Bill No. of 2018 and Assembly Bill No. of 2018).
2. a. (1) The New Jersey Infrastructure Bank is authorized to expend funds for the purpose of making supplemental loans to or on behalf of the project sponsors listed below for the following clean water environmental infrastructure projects:
|
Project Sponsor |
Project Number |
Estimated Allowable Trust Loan Amount |
Estimated Total Allowable Loan Amount |
|
Burlington Township |
S340712-14-1 |
$150,000 |
$200,000 |
|
Manasquan Borough |
S340450-01-1 |
$1,582,500 |
$2,110,000 |
|
Mendham Township |
S340477-01-1 |
$1,615,500 |
$2,154,000 |
|
North Hudson SA |
S340952-19-1 |
$525,000 |
$700,000 |
|
Warren Township SA |
S340964-02-1 |
$262,500 |
$350,000 |
|
Total Projects: 5 |
|
$4,135,500 |
$5,514,000 |
(2) The loans authorized in this subsection shall be made for the difference between the allowable loan amounts required by these projects based upon final building costs pursuant to subsection a. of section 7 of this act and the loan amounts certified by the chairman of the trust in State fiscal years 2016 and 2017 and for increased allowable costs as defined and determined in accordance with the rules and regulations adopted by the trust pursuant to section 27 of P.L.1985, c.334 (C.58:11B‑27). The loans authorized in this subsection shall be made to or on behalf of the project sponsors listed, up to the individual amounts indicated and in the priority stated, to the extent sufficient funds are available, except as a project fails to meet the requirements of section 6 of this act.
(3) The loans authorized in this subsection shall have priority over the environmental infrastructure projects listed in subsection a. of section 4 of this act.
b. The trust is authorized to adjust the allowable trust loan amount for projects authorized in this section to between 25 percent and 75 percent of the total allowable loan amount and such excess amounts to the extent the priority ranking and an insufficiency of funding prevent the Department of Environmental Protection from making the loan as provided in subsection f. of section 7 of this act.
3 a. The New Jersey Infrastructure Bank is authorized to make loans to or on behalf of the project sponsors for the clean water projects listed in subsection a. of section 2 and subsection a. of section 4 of this act up to the individual amounts indicated and in the priority stated, except as any such amount may be reduced by the trust pursuant to subsection a. of section 7 of this act, or if a project fails to meet the requirements of section 6 of this act. The trust is authorized to increase any such amount pursuant to subsection b., c., d., e. or f. of section 7 or section 8 of this act.
b. The trust is authorized to make loans to project sponsors for the drinking water projects listed in subsection b. of section 4 of this act up to the individual amounts indicated and in the priority stated, except as any such amount may be reduced by the trust pursuant to subsection a. of section 7 of this act, or if a project fails to meet the requirements of section 6 of this act. The trust is authorized to increase any such amount pursuant to subsection b., c., d., e. or f. of section 7 or section 8 of this act.
4. a. The following
environmental infrastructure projects shall be known and may be cited as the
"Storm Sandy and State Fiscal Year 2019 Clean Water Project Eligibility List":
|
Project Sponsor |
Project Number |
Estimated Allowable Trust Loan Amount |
Estimated Total Allowable Loan Amount |
|
Aberdeen Township |
S340869-02 |
$6,750,000 |
$9,000,000 |
|
Atlantic County UA |
S340809-23 |
$11,040,000 |
$11,040,000 |
|
Atlantic County UA |
S340809-24 |
$600,000 |
$800,000 |
|
Atlantic County UA |
S340809-25 |
$17,520,000 |
$17,520,000 |
|
Atlantic County UA |
S340809-26 |
$1,500,000 |
$1,500,000 |
|
Atlantic County UA |
S340809-28 |
$3,075,000 |
$4,100,000 |
|
Bayshore RSA |
S340697-05 |
$9,750,000 |
$13,000,000 |
|
Bayshore RSA |
S340697-06 |
$11,325,000 |
$15,100,000 |
|
Bradley Beach Borough |
S340472-01 |
$2,025,000 |
$2,700,000 |
|
Bradley Beach Borough |
S340472-02 |
$1,942,538 |
$2,590,050 |
|
Burlington City |
S340140-01 |
$1,275,000 |
$1,700,000 |
|
Camden County MUA |
S340640-17 |
$2,625,000 |
$3,500,000 |
|
Carteret Borough |
S340939-09 |
$11,257,500 |
$15,010,000 |
|
Cinnaminson SA |
S340170-08 |
$870,000 |
$1,160,000 |
|
Elizabeth City |
S340942-19 |
$5,775,000 |
$7,700,000 |
|
Glen Ridge Borough |
S340861-03 |
$334,387 |
$445,849 |
|
Gloucester City |
S340958-08 |
$1,575,000 |
$2,100,000 |
|
Gloucester County UA |
S340902-14 |
$33,750,000 |
$45,000,000 |
|
Gloucester County UA |
S340902-16 |
$1,575,000 |
$2,100,000 |
|
Hightstown Borough |
S340915-05 |
$1,050,000 |
$1,400,000 |
|
Hoboken City |
S340635-07 |
$3,750,000 |
$5,000,000 |
|
Jersey City |
S340928-30 |
$2,033,250 |
$2,711,000 |
|
Jersey City MUA |
S340928-15 |
$30,750,000 |
$41,000,000 |
|
Jersey City MUA |
S340928-19 |
$5,625,000 |
$7,500,000 |
|
Jersey City MUA |
S340928-20 |
$5,400,000 |
$7,200,000 |
|
Jersey City MUA |
S340928-22 |
$562,500 |
$750,000 |
|
Kearny MUA |
S340259-07 |
$4,875,000 |
$6,500,000 |
|
Little Egg Harbor MUA |
S340579-02 |
$3,187,500 |
$4,250,000 |
|
Manasquan River RSA |
S340911-03 |
$495,000 |
$660,000 |
|
Mendham Township |
S340477-01 |
$1,875,000 |
$2,500,000 |
|
Millville City |
S340921-07 |
$9,000,000 |
$12,000,000 |
|
Montclair Township |
S340837-04 |
$1,275,000 |
$1,700,000 |
|
Newark City |
S340815-22 |
$7,875,000 |
$10,500,000 |
|
North Bergen MUA |
S340652-14 |
$17,250,000 |
$23,000,000 |
|
North Hudson SA |
S340952-22 |
$13,500,000 |
$18,000,000 |
|
North Hudson SA |
S340952-23 |
$2,325,000 |
$3,100,000 |
|
North Hudson SA |
S340952-28 |
$1,275,000 |
$1,700,000 |
|
Northwest Bergen County UA |
S340700-13 |
$3,900,000 |
$5,200,000 |
|
Ocean County |
S344080-09 |
$975,000 |
$1,300,000 |
|
Ocean County |
S344080-10 |
$187,500 |
$250,000 |
|
Ocean County |
S344080-11 |
$262,500 |
$350,000 |
|
Ocean Township SA |
S340750-13 |
$412,500 |
$550,000 |
|
Ocean Township SA |
S340750-14 |
$1,875,000 |
$2,500,000 |
|
Passaic Valley SC |
S340689-25 |
$6,825,000 |
$9,100,000 |
|
Passaic Valley SC |
S340689-30 |
$2,775,000 |
$3,700,000 |
|
Passaic Valley SC |
S340689-31 |
$3,000,000 |
$4,000,000 |
|
Passaic Valley SC |
S340689-32 |
$7,500,000 |
$10,000,000 |
|
Passaic Valley SC |
S340689-34 |
$2,175,000 |
$2,900,000 |
|
Passaic Valley SC |
S340689-38 |
$15,750,000 |
$21,000,000 |
|
Passaic Valley SC |
S340689-39 |
$3,612,000 |
$4,816,000 |
|
Paulsboro Borough |
S340164-01 |
$2,062,500 |
$2,750,000 |
|
Perth Amboy City |
S340435-11 |
$4,844,513 |
$6,459,351 |
|
Perth Amboy City |
S340435-13 |
$637,500 |
$850,000 |
|
Plumsted Township |
S340607-03 |
$20,250,000 |
$27,000,000 |
|
Point Pleasant Beach Borough |
S344190-02 |
$2,250,000 |
$3,000,000 |
|
Rahway Valley SA |
S340547-15 |
$1,941,389 |
$2,588,518 |
|
Rahway Valley SA |
S340547-14 |
$7,125,000 |
$9,500,000 |
|
Riverdale Borough |
S340729-02 |
$217,342 |
$289,789 |
|
Riverside SA |
S340490-01 |
$630,000 |
$840,000 |
|
Rockaway Valley RSA |
S340821-06 |
$6,000,000 |
$8,000,000 |
|
Rockaway Valley RSA |
S340821-07 |
$6,150,000 |
$8,200,000 |
|
Rockaway Valley RSA |
S340821-09 |
$1,650,000 |
$2,200,000 |
|
Roxbury Township |
S340381-07 |
$5,625,000 |
$7,500,000 |
|
Ship Bottom Borough |
S340311-03 |
$3,525,000 |
$4,700,000 |
|
Somerset Raritan Valley SA |
S340801-08 |
$12,375,000 |
$16,500,000 |
|
Somerville Borough |
S342013-01 |
$8,625,000 |
$11,500,000 |
|
Stafford Township |
S344100-03 |
$4,200,000 |
$5,600,000 |
|
Stony Brook RSA |
S340400-10 |
$3,825,000 |
$5,100,000 |
|
Sussex County MUA |
S342008-05 |
$9,750,000 |
$13,000,000 |
|
Ventnor City |
S340667-03 |
$1,500,000 |
$2,000,000 |
|
Total Projects: 70 |
|
$389,100,418 |
$508,780,557 |
b. The following environmental infrastructure projects shall be known and may be cited as the "Storm Sandy and State Fiscal Year 2019 Drinking Water Project Eligibility List":
|
Project Sponsor |
Project No. |
Estimated Allowable Trust Loan Amount |
Estimated Total Allowable Loan Amount |
|
Aberdeen Township |
1330004-001 |
$2,925,000 |
$3,900,000 |
|
Bellmawr Borough |
0404001-006 |
$1,725,000 |
$2,300,000 |
|
Berkeley Township MUA |
1505004-009 |
$1,650,000 |
$2,200,000 |
|
Berkeley Township MUA |
1505004-007 |
$525,000 |
$700,000 |
|
Bordentown City |
0303001-008 |
$1,650,000 |
$2,200,000 |
|
Brick Township MUA |
1506001-012 |
$4,065,000 |
$5,420,000 |
|
Cape May City |
0502001-004 |
$1,650,000 |
$2,200,000 |
|
Clinton Town |
1005001-008 |
$1,125,000 |
$1,500,000 |
|
Clinton Town |
1005001-009 |
$900,000 |
$1,200,000 |
|
Elmer Borough |
1702001-001 |
$600,000 |
$800,000 |
|
Gloucester City |
0414001-022 |
$900,000 |
$1,200,000 |
|
Hoboken City |
0905001-001 |
$6,375,000 |
$8,500,000 |
|
Jackson Township MUA |
1511001-012 |
$8,250,000 |
$11,000,000 |
|
Jackson Township MUA |
1511001-013 |
$15,000,000 |
$20,000,000 |
|
Jackson Township MUA |
1511001-010 |
$6,150,000 |
$8,200,000 |
|
Lavallette Borough |
1515001-001 |
$998,250 |
$1,331,000 |
|
Little Egg Harbor MUA |
1516001-004 |
$2,250,000 |
$3,000,000 |
|
Long Beach Township |
1517001-501 |
$1,725,000 |
$2,300,000 |
|
Manchester Township |
1518005-002 |
$4,125,000 |
$5,500,000 |
|
Mantua Township MUA |
0810004-002 |
$1,350,000 |
$1,800,000 |
|
Mantua Township MUA |
0810004-003 |
$1,050,000 |
$1,400,000 |
|
Maple Shade Township |
0319001-006 |
$1,950,000 |
$2,600,000 |
|
Middlesex Water Company |
1225001-026 |
$9,750,000 |
$13,000,000 |
|
Netcong Borough |
1428001-007 |
$2,775,000 |
$3,700,000 |
|
Netcong Borough |
1428001-008 |
$825,000 |
$1,100,000 |
|
Netcong Borough |
1428001-009 |
$300,000 |
$400,000 |
|
Newark City |
0714001-016 |
$10,500,000 |
$14,000,000 |
|
Newark City |
0714001-500 |
$3,825,000 |
$5,100,000 |
|
NJ American Water Co, Inc. |
1345001-017 |
$7,575,000 |
$10,100,000 |
|
NJ American Water Co., Inc. |
2004002-013 |
$12,000,000 |
$16,000,000 |
|
NJ American Water Co., Inc. |
2004002-500 |
$27,000,000 |
$36,000,000 |
|
NJ American Water Co., Inc. |
1345001-016 |
$10,125,000 |
$13,500,000 |
|
NJ American Water Co., Inc. |
2004002-011 |
$9,600,000 |
$12,800,000 |
|
North Jersey District Water Supply Comm. |
1613001-022 |
$12,750,000 |
$17,000,000 |
|
North Jersey District Water Supply Comm. |
1613001-025 |
$18,000,000 |
$24,000,000 |
|
North Jersey District Water Supply Comm. |
1613001-033 |
$3,075,000 |
$4,100,000 |
|
Old Bridge MUA |
1209002-013 |
$3,000,000 |
$4,000,000 |
|
Paulsboro Borough |
0814001-003 |
$2,100,000 |
$2,800,000 |
|
Pennington Borough |
1108001-002 |
$937,500 |
$1,250,000 |
|
Rahway City |
2013001-007 |
$13,650,000 |
$18,200,000 |
|
Red Bank Borough |
1340001-002 |
$1,500,000 |
$2,000,000 |
|
Saddle Brook Township |
0257001-002 |
$1,425,000 |
$1,900,000 |
|
Ship Bottom Borough |
1528001-002 |
$2,812,500 |
$3,750,000 |
|
Stafford Township |
1530004-018 |
$1,800,000 |
$2,400,000 |
|
Total Projects: 44 |
|
$222,263,250 |
$296,351,000 |
c. The trust is authorized to adjust the allowable trust loan amount for projects authorized in this section to between zero percent and 75 percent of the total allowable loan amount, and such excess amounts to the extent the priority ranking and an insufficiency of funding prevents the Department of Environmental Protection from making the loan as provided in subsection f. of section 7 of this act, and up to 100 percent of the total allowable loan amount for projects certified by the Department of Environmental Protection pursuant to section 1 of P.L.2013, c.93 (C.58:11B-9.5).
5. In accordance with and subject to the provisions of sections 5, 6, and 23 of P.L.1985, c.334 (C.58:11B‑5, 58:11B‑6, and 58:11B‑23) and as set forth in the financial plan required pursuant to section 21 of P.L.1985, c.334 (C.58:11B‑21), or the financial plan required pursuant to section 25 of P.L.1997, c.224 (C.58:11B-21.1), any proceeds from bonds issued by the trust to make loans for priority environmental infrastructure projects listed in sections 2 and 4 of this act which are not expended for that purpose may be applied for the payment of all or any part of the principal of and interest and premium on the trust bonds whether due at stated maturity, the interest payment dates or earlier upon redemption. A portion of the proceeds from bonds issued by the trust to make loans for priority environmental infrastructure projects pursuant to this act may be applied for the payment of capitalized interest and for the payment of any issuance expenses; for the payment of reserve capacity expenses; for the payment of debt service reserve fund expenses for the payment of the loan origination fees; and for the payment of increased costs as defined and determined in accordance with the rules and regulations adopted by the trust pursuant to section 27 of P.L.1985, c.334 (C.58:11B‑27).
6. Any loan made by the New Jersey Infrastructure Bank pursuant to this act shall be subject to the following requirements:
a. The chairman of the trust has certified that the project is in compliance with the provisions of P.L.1977, c.224, P.L.1985, c.334, P.L.1992, c.88, P.L.1997, c.223, P.L.1997, c.224, P.L.1997, c.225, P.L.1999, c.175 or P.L.2003, c.162, and any rules and regulations adopted pursuant thereto, and any amendatory and supplementary acts thereto, as applicable. In making this certification, the chairman may conclusively rely on the project review conducted by the Department of Environmental Protection without any independent review thereof by the trust;
b. The loan shall be conditioned upon inclusion of the project on a project eligibility list approved pursuant to section 20 of P.L.1985, c.334 (C.58:11B-20) or section 24 of P.L.1997, c.224 (C.58:11B-20.1);
c. The loan shall be repaid within a period not to exceed 30 years, or 45 years for combined sewer overflow abatement projects, of the making of the loan;
d. The loan, including any portion thereof made by the trust pursuant to subsection f. of section 7 of this act, shall not exceed the allowable project cost of the environmental infrastructure facility, exclusive of capitalized interest and issuance expenses as provided in subsection b. of section 7 of this act, reserve capacity expenses and the debt service reserve fund expenses as provided in subsection c. of section 7 of this act, interest earned on project costs as provided in subsection d. of section 7 of this act, the amounts of the loan origination fee as provided in subsection e. of section 7 of this act, refunding increases as provided in section 8 of this act and increased costs as defined and determined in accordance with the rules and regulations adopted by the trust pursuant to section 27 of P.L.1985, c.334 (C.58:11B‑27);
e. The loan shall bear interest, exclusive of any late charges or administrative fees payable to the trust pursuant to subsection o. of section 5 of P.L.1985, c.334 (C.58:11B‑5) by the project sponsors receiving trust loans, at or below the interest rate paid by the trust on the bonds issued to make or refund the loans authorized by this act, adjusted for underwriting discount and original issue discount or premium, in accordance with the terms and conditions set forth in the financial plan required pursuant to section 21 of P.L.1985, c.334 (C.58:11B‑21) or the financial plan required pursuant to section 25 of P.L.1997, c.224 (C.58:11B-21.1); and
f. The loan shall be subject to all other terms and conditions as the trust shall determine to be consistent with the provisions of P.L.1985, c.334 (C.58:11B‑1 et seq.) and any rules and regulations adopted pursuant thereto, and with the financial plan required by section 21 of P.L.1985, c.334 (C.58:11B‑21) or the financial plan required pursuant to section 25 of P.L.1997, c.224 (C.58:11B-21.1).
The eligibility lists and authorization for the making of loans pursuant to this act shall expire on July 1, 2019, and any project sponsor which has not executed and delivered a loan agreement with the trust for a loan authorized in this act shall no longer be entitled to that loan.
7. a. The New Jersey Infrastructure Bank is authorized to reduce the individual amount of loan funds made available to or on behalf of project sponsors pursuant to sections 2 and 4 of this act based upon final building costs defined in and determined in accordance with rules and regulations adopted by the trust pursuant to section 27 of P.L.1985, c.334 (C.58:11B‑27) or rules and regulations adopted by the Commissioner of Environmental Protection pursuant to section 4 of P.L.1985, c.329, section 11 of P.L.1977, c.224 (C.58:12A-11) or section 5 of P.L.1981, c.261. The trust is authorized to use any such reduction in the loan amount made available to a project sponsor to cover that project sponsor's increased costs due to differing site conditions or other allowable expenses as defined and determined in accordance with the rules and regulations adopted by the trust pursuant to section 27 of P.L.1985, c.334 (C.58:11B‑27).
b. The trust is authorized to increase each loan amount authorized in sections 2 and 4 of this act by the amount of capitalized interest and issuance expenses allocable to each loan made by the trust pursuant to this act; provided that the increase for issuance expenses, excluding underwriters' discount, original issue discount or premiums, municipal bond insurance premiums and bond rating agency fees, shall not exceed 0.4 percent of the principal amount of trust bonds issued to make loans authorized by this act.
c. The trust is authorized to increase each loan amount authorized in sections 2 and 4 of this act by the amount of reserve capacity expenses, and by the debt service reserve fund expenses associated with the costs identified in paragraphs (3) and (4) of subsection d. of section 1 of this act.
d. The trust is authorized to increase each loan amount authorized in sections 2 and 4 of this act by the interest earned on amounts deposited for project costs pending their distribution to project sponsors.
e. The trust is authorized to increase each loan amount authorized in sections 2 and 4 of this act by the loan origination fee.
f. The trust is authorized to increase each loan amount authorized in sections 2 and 4 of this act by the amount appropriated to the Department of Environmental Protection for the purpose of making the corresponding zero interest loan pursuant to section 3 of P.L. , c. (pending before the Legislature as Senate Bill No. of 2018 and Assembly Bill No. of 2018) in connection with the project costs of the project sponsor, to the extent the priority ranking and an insufficiency of funding prevents the department from making the loan, and for lead abatement projects ineligible for department loans under the Federal Clean Water Act and Safe Drinking Water Act.
8. The New Jersey Infrastructure
Bank is authorized to increase the individual amount of loan funds made
available to project sponsors by the trust pursuant to P.L.1989, c.190,
P.L.1990, c.97, P.L.1991, c.324, P.L.1992, c.37, P.L.1993, c.192, P.L.1994,
c.105, P.L.1995, c.218, P.L.1996, c.87, P.L.1997, c.222, P.L.1998, c.85,
P.L.1999, c.173, P.L.2000, c.93, P.L.2001, c.224, P.L.2002, c.71, P.L.2003,
c.159, P.L.2004, c.110, P.L.2005, c.197, P.L.2006, c.67, P.L.2007, c.140,
P.L.2008, c.67, P.L.2009, c.101, P.L.2010, c.62, P.L.2011, c.95, P.L.2012,
c.38, P.L.2013, c.94, P.L.2014, c.26, P.L.2015, c.107, P.L.2016, c.31 as
amended by P.L.2017, c.13, P.L.2017, c.142 as amended by P.L.2017, c.327, or P.L.
, c. (pending before the Legislature as Senate Bill No. of
2018 and Assembly Bill No. of 2018), provided that adequate savings are
achieved, to compensate for a refunding of trust bonds issued to make loans
authorized by the aforementioned acts.
9. The expenditure of funds authorized pursuant to this act is subject to the provisions of P.L.1977, c.224 (C.58:12A-1 et al.), P.L.1985, c.329, P.L.1985, c.334 (C.58:11B‑1 et seq.), as amended and supplemented by P.L.1997, c.224, P.L.1992, c.88, P.L.1989, c.181, P.L.1997, c.223, P.L.1997, c.225, P.L.1999, c.175, or P.L.2003, c.162, and the rules and regulations adopted pursuant thereto or the Federal Safe Drinking Water Act, as appropriate.
10. a. There is appropriated to the New Jersey Infrastructure Bank, as needed to make short-term or temporary loans, from funds deposited in any account, including the "Wastewater Treatment Fund," the "1992 Wastewater Treatment Fund," the "Water Supply Fund," the "2003 Water Resources and Wastewater Treatment Trust Fund," the "Stormwater Management and Combined Sewer Overflow Abatement Fund," the "Clean Water State Revolving Fund," or the "Drinking Water State Revolving Fund," as appropriate, and from any net earnings received from the investment and reinvestment of such deposits, the sum of $600,000,000 consisting of:
(1) The uncommitted balance of $500,000,000 currently on deposit in the special fund (hereinafter referred to as the "Interim Environmental Financing Program Fund") created and established by the trust for the short-term or temporary loan financing or refinancing program (hereinafter referred to as the "Interim Environmental Financing Program") authorized pursuant to subsection d. of section 9 of P.L.1985, c.334 (C.58:11B-9), which balance previously had been appropriated to the trust for such purpose pursuant to section 11 of P.L.2017, c.142, less any Interim Environmental Financing Program Fund amounts appropriated to the Department of Environmental Protection to supplement the sums appropriated from the Clean Water State Revolving Fund for clean water projects pursuant to the Federal Clean Water Act and from the Drinking Water State Revolving Fund for drinking water projects pursuant to the Federal Safe Drinking Water Act, provided that at no time shall funds committed pursuant to this section exceed funds required by the Department of Environmental Protection to meet long-term obligations; and
(2) such other amounts to be deposited in the Interim Environmental Financing Program Fund, in an aggregate amount that does not exceed at any time, the amount appropriated, provided that the amount so reappropriated and appropriated to the trust for deposit in the Interim Environmental Financing Program Fund shall be utilized by the trust to make short-term or temporary loans pursuant to the Interim Environmental Financing Program to any one or more of the project sponsors, for the respective projects thereof, identified in the interim environmental financing project priority list (hereinafter referred to as the "Interim Environmental Financing Program Project Priority List") in the form provided to the Legislature by the Commissioner of Environmental Protection.
b. The Interim Environmental Financing Program Project Priority List shall be submitted to the Secretary of the Senate and the Clerk of the General Assembly at least once each fiscal year. The Secretary of the Senate and the Clerk of the General Assembly shall cause the date of submission to be entered upon the Senate Journal and the Minutes of the General Assembly, respectively. Any environmental infrastructure project or the project sponsor thereof not identified in the Interim Environmental Financing Program Project Priority List shall not be eligible for a short-term or temporary loan from the Interim Environmental Financing Program Fund.
c. The trust may issue market rate interest short-term temporary loans for wastewater treatment and water supply projects on the Interim Environmental Financing Program Project Priority List for the reduction of lead in publicly-owned facilities otherwise ineligible to receive funding for that purpose pursuant to subsection a. of this section.
11. a. There is appropriated to the New Jersey Infrastructure Bank for deposit in the special fund created and established by the trust for the short-term or temporary Disaster Relief Emergency Financing Program loan financing or refinancing program (hereinafter referred to as the "Disaster Relief Emergency Financing Program") authorized pursuant to subsection a. of section 1 of P.L.2013, c.93 (C.58:11B-9.5) such sums as needed consisting of:
(1) sums from the "Interim Environmental Financing Program Fund" as needed by the trust to make short-term or temporary loans pursuant to the Disaster Relief Emergency Financing Program to any one or more of the project sponsors, for the respective projects thereof; and
(2) such other amounts to be deposited in the Disaster Relief Emergency Financing Program Fund, provided that the amount so appropriated to the trust for deposit in the Disaster Relief Emergency Financing Program Fund shall be utilized by the trust to make short-term or temporary loans pursuant to the Disaster Relief Emergency Financing Program to any one or more of the project sponsors, for the respective projects thereof. Any projects funded by the Disaster Relief Emergency Financing Program shall be subject to the approval of the Commissioner of Environmental Protection.
b. The Disaster Relief Emergency Financing Program Project Priority List shall be submitted to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1) at least once in each fiscal year. Any environmental infrastructure project or the project sponsor thereof not identified in the Disaster Relief Emergency Financing Program Project Priority List shall not be eligible for a short-term or temporary loan from the Disaster Relief Emergency Financing Program Fund.
12. Notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the trust shall not be required to adopt rules and regulations governing the making of Disaster Relief Emergency Financing Program loans.
13. This act shall take effect immediately.
STATEMENT
This bill authorizes the New Jersey Infrastructure Bank (trust) (formerly the New Jersey Environmental Infrastructure Trust) to expend up to $810.6 million and any unexpended balances from previous authorizations to provide loans with an interest rate at or below the prevailing market rate to project sponsors (primarily local governments, public authorities, or public water utilities) for a portion of the total costs of 119 eligible environmental infrastructure projects. The eligible projects are those included in the "Storm Sandy and State Fiscal Year 2019 Clean Water Project Priority List" and the "Storm Sandy and State Fiscal Year 2019 Drinking Water Project Priority List," as well as five clean water environmental infrastructure projects that received loans in the past and which now require supplemental loans in order to meet actual costs.
In addition to the use of prior unused allocations, this bill also permits the trust to use any loan repayments received to date, and the amounts for capitalized interest, bond issuance expenses and related amounts, to fund the State Fiscal Year 2019 New Jersey Environmental Infrastructure Financing Program (NJEIFP).
Since its creation in 1985, the trust in partnership with the Department of Environmental Protection have provided low‑cost NJEIFP loans for the construction of environmental infrastructure projects that enhance and protect ground and surface water resources, ensure the safety of drinking water supplies, and make possible responsible and sustainable economic development. Since 1985, NJEIFP loans to local government units and some private water companies have totaled more than $6.7 billion of which the Trust has provided more than $2.8 billion in loans to finance wastewater systems, combined sewer overflow abatement, nonpoint source pollution control and safe drinking water supplies generating more than 130,000 construction projects throughout the State.
